Earlier this week, Corsair Gaming (NASDAQ: CRSR) announced that it was launching a public offering, which sent shares lower. Certain existing shareholders are selling 7.5 million shares through the deal, with underwriters having a 30-day option to buy another 1.13 million shares approximately. Here's why investors shouldn't fret about the deal. A custom gaming PC setup made by Corsair. Image source: Corsair Gaming. It's mostly just EagleTree The deal is not a dilutive secondary offering where Corsair is issuing more shares. Instead, the company is conducting the offering as an orderly way for current stockholders to cash out some of their holdings. Specifically, it's primarily majority investor EagleTree Capital, which is selling a chunk of its position. A few other execs are also selling some shares, such as Thi La, who was recently promoted to chief operating officer. Stockholder Role Shares Offered EagleTree Capital Majority owner 7.135 million Andy Paul CEO 250,000 Thi La COO 100,000 Ronald van Veen Head of investor relations 15,000 Total 7.5 million Data source: SEC filings. EagleTree Capital is a private equity firm that acquired its majority stake in Corsair back in 2017. The investment firm had 77.8 million shares, a 92% stake, in Corsair prior to its September initial public offering and sold several million shares through that offering. After this latest sale is complete, EagleTree will have 63 million shares, or 69% of shares outstanding. None of this is particularly surprising. By definition, private equity firms invest in private companies with the hope of creating value by helping them grow. The ultimate goal is often to take the companies public, which provides liquidity and gives the firm a chance to realize some of those gains. EagleTree has accomplished its objective: The initial investment was $550 million, and Corsair's current market cap as a public company is $3.3 billion. Furthermore, companies sometimes conduct these types of offerings shortly after going public as a way to mitigate potential volatility related to lockup expirations. Conducting an offering to give existing shareholders an opportunity to sell at a specific price is less chaotic than flooding the market with shares once lockup agreements expire, which often (but not always) creates significant selling pressure. In Corsair's case, the lockup agreements pertaining to the IPO expire on March 21, at which point the supply of available shares will increase substantially. Corsair's float is currently just under 18 million shares, or approximately 20% of the 91.9 million total shares outstanding. As the float increases in the months ahead, due to this public offering as well as lockup-agreement expirations, that should help reduce some of the stock's volatility. Corsair's fundamentals remain incredibly strong, and it was always a distinct possibility that EagleTree would unload some of its holdings. Long-term investors should remain focused on the booming live-streaming market that is driving revenue growth and margin expansion. The company is expected to report fourth-quarter results next month, and judging by larger peer Logitech International's recent results (Logitech's gaming segment saw revenue surge by 73%), Corsair may be on track to beat earnings expectations, even after boosting its guidance at the end of November. 10 stocks we like better than Corsair Gaming, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Corsair Gaming, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Evan Niu, CFA owns shares of Corsair Gaming, Inc. The Motley Fool recommends Logitech International. The Motley Fool has a disclosure policy.Source